# Check Point Software Technologies Ltd. (CHKP)

> Makes software and hardware that protect computer networks, devices, and cloud systems from cyber attacks.

- Exchange: NASDAQ · Sector: Technology · Industry: Software Infrastructure
- Headquarters: 5 Shlomo Kaplan Street, Tel Aviv, Israel
- Founded: 1993
- Employees: 6825 (2025)
- SEC CIK: 0001015922 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001015922))
- Full page: https://inspectstocks.com/stocks/chkp
- Data as of: price 2026-09-28; newest filing used 2026-07-30; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $2.8B | $2.4B |
| Revenue growing recently | passed | $2.8B | $2.7B |
| Free cash flow positive | passed | $1.2B |  |
| Free cash flow growing overall | passed | $1.2B | $1.1B |
| Free cash flow growing recently | passed | $1.2B | $1B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 37.9% |  |
| Healthy profit margin | passed | 37.9% |  |
| Strong operating margin | passed | 29.0% |  |
| Good return on equity | passed | 36.4% |  |
| Debt under control | passed | 0.70 |  |
| Turns sales into cash | passed | 42.4% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $2.8B |
| Net income, trailing twelve months | $1B |
| Free cash flow, trailing twelve months | $1.2B |
| Net margin | 37.9% |
| Operating margin | 29.0% |
| Return on equity | 36.4% |
| Debt to equity | 0.70 |
| Diluted EPS, trailing twelve months | $9.77 |
| Share price | $129.22 |
| Market value | $13.6B |
| Price / earnings | 13.2x |
| Price / sales | 4.9x |

## What the business does

Check Point develops and sells cybersecurity tools that stop hackers, malware, and other digital threats from reaching companies' computers and networks. Its products include physical and software firewalls that guard the edges of networks, software that protects individual computers and mobile devices, tools for securing email and cloud services, and management software that lets security teams control everything from one place. Customers also buy ongoing subscription services for threat updates and technical support.

### How it makes money

- **Security subscriptions** (about 45% of revenue (trailing twelve months to June 2026 and FY 2025)) — Customers pay recurring fees for continuous threat intelligence, advanced security features, and cloud-based services
- **Software updates and maintenance** (about 35% of revenue (trailing twelve months to June 2026 and FY 2025)) — Customers pay for software upgrades, patches, and technical support contracts after buying the products
- **Products and licenses** (about 20% of revenue (trailing twelve months to June 2026 and FY 2025)) — Customers buy physical network security appliances (firewalls) and perpetual or term software licenses up front

### Products

- **Network security gateways and firewalls** — Hardware appliances and software that sit at the edge of a company's network and block unauthorized traffic and attacks
- **Endpoint and workspace security** — Software installed on individual computers, laptops, and mobile devices to stop malware and protect user activity
- **Cloud and email security** — Tools that protect data and applications running in cloud services and scan email for phishing and malicious links
- **Security management software** — A central console that lets security teams configure, monitor, and update all of Check Point's products from one place
- **Subscription and support services** — Ongoing updates of threat information, software maintenance, and technical help provided after the initial sale

### Customers

- Large companies and governments that buy through distributors and resellers to protect their internal networks and data centers
- Medium-sized businesses that purchase security appliances and subscriptions for branch offices and remote workers
- Managed security service providers that resell or operate Check Point products for their own clients
- Service providers and carriers that integrate the security tools into the networks they offer to end users

### Competitors

- Palo Alto Networks (PANW) — Network firewalls, cloud security, and overall cybersecurity platforms
- Fortinet (FTNT) — Network security appliances, firewalls, and security software
- Cisco Systems (CSCO) — Network security hardware and software as part of its broader networking business
- CrowdStrike (CRWD) — Endpoint security software that protects individual computers and devices
- Zscaler (ZS) — Cloud-based network and internet security services

### What it depends on

- Channel partners (distributors and resellers) that deliver the majority of sales to end customers
- Continued demand for cybersecurity products as companies face new digital threats
- Ability to keep the software updated against evolving attack methods
- Sales of physical network security appliances alongside growing subscription services

### What could go wrong

- Intense competition from other cybersecurity companies that offer similar firewalls, endpoint, and cloud security products
- Heavy reliance on a two-tier distribution network; changes in partner relationships or their performance can affect sales volume
- Need to continuously develop new features to address emerging threats such as artificial-intelligence-driven attacks or the company could lose customers to more current alternatives

## More on this company

- [Overview](https://inspectstocks.com/stocks/chkp)
- [Financial statements](https://inspectstocks.com/stocks/chkp/financials)
- [Competitors](https://inspectstocks.com/stocks/chkp/peers)
- [Earnings](https://inspectstocks.com/stocks/chkp/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.